Posting an operating loss of $110,000 indicated just how challenged Presbyterian Support Otago is as demand for its services grows and income tightens, board corporate and finance committee chairman Ray Macleod said.
"It's been a difficult year. Finances are tight. We can't keep meeting demand," he said at Presbyterian Support Otago's recent annual meeting.
The board's 2011 annual report, presented at last week's annual meeting, shows its total income was $30.9 million and that fundraising income of $784,000 was up 18% on the year before.
Board chairman Frazer Barton said having a deficit of $110,000 showed just how tightly the service was run.
"We're using our resources to the maximum extent possible without depriving future generations."
Mr Macleod said the overall result of a $6.8 million profit was driven "almost exclusively" by property revaluations ($6.7 million) so the result was "smoke and mirrors".
Remove the revaluations and a $110,000 loss was left, he said.
The $6.8 million profit was problematic for PSO, as it would make it difficult when seeking funds from all sources.
Revenue was slightly down for the year, bequests were stable, but costs were up $317,000.
"Costs are increasing at a greater rate than income as they have for the past three years and the current financial year will be no different."
Prudence was essential and it was unlikely PSO would consider any expansion projects as its budgets became increasingly inflexible, Mr Macleod said.
"I cannot under emphasise the need for prudence and care."
PSO chief executive Gillian Bremner said ongoing Southern District Health Board in-home support continued to effect its Enliven Positive Ageing Services.
